Olo, which makes online ordering software for restaurants, saw shares rise by up to 24% in its public market debut on Wednesday.
The company priced the shares at $ 25 a share, raising about $ 450 million at a valuation of $ 3.6 billion. Olo initially said its target price was $ 16 to $ 18 a share, before raising it to $ 20 to $ 22 a share on Monday. The stock is traded on the New York Stock Exchange under the tick “OLO”.
“For us we are so well known in the restaurant industry, but so unknown outside the restaurant industry, certainly by public investors, so it’s important for us to meet with as many investors as possible,” said CEO Noah Glass in an interview.
Prior to the initial public offering, Olo has raised less than $ 100 million in funding from outside investors since the company was founded in 2005. This contrasts sharply with other restaurant technology companies, such as DoorDash, which has raised $ 2 billion before going public in December.
Glass said the higher profile of being listed publicly could help Olo grow beyond large chain restaurants, working with smaller restaurants or even working with food or shops.
The increase in the number of online restaurant orders during the coronavirus pandemic helped Olo make a profit of $ 3.06 million last year, according to regulatory documents. In 2018 and 2019, the company lost money.
In 2020, net sales nearly doubled to $ 98.4 million. Olo’s revenue comes from subscription fees charged by restaurant chains such as Shake Shack and Brinker International’s Chili’s for access to its digital ordering software, as well as transaction fees for delivery orders.